The value of mergers and acquisitions (M&A) in the MENA region increased 13 percent in 2013 to $50.7 billion from $44.8 billion in 2012, EY’s 2013 year-end “MENA mergers and acquisitions (M&A) update” said.
In 2013, 442 deals were announced as compared to 398 deals in 2012, an increase of 11 percent.
The fourth quarter of 2013 saw higher deal activity yet lower deal value compared to the same period in 2012.
Announced deal volumes increased by 11 percent from 107 deals in Q4 2012 to 119 deals in Q4 2013. Deal values declined by 40 percent from $13.3 billion in Q4 2012 to $8.0 billion Q4 2013.
In comparison to the previous quarter, announced deal values decreased from $17.5 billion in Q3 2013 to $8.0 billion in Q4 2013, whereas announced deal activity increased by 28 percent from 93 deals in Q3 2013 to 119 deals in Q4 2013.
Of the top 10 announced deals by value in MENA in 2013, five of the deals were acquired by UAE companies and two of the deals were acquired by Qatari companies.
The largest M&A deal in 2013 was the merger of Dubai Aluminum with Emirates Aluminium for $7.5 billion, followed by the acquisition of Itissalat Al Maghrib SA (Maroc Telecom) in Morocco by Emirates Telecommunications Corporation in the UAE for $6.1 billion.
The trend of telecommunication deals representing mega deal values continued in 2013 with Qatar Foundation buying a 5 percent stake in Bharti Airtel for $1.3 billion.
In terms of value, domestic deal values rose to $22.5 billion, followed closely by outbound deals with announced deal values of about $18.5 billion, 37 percent of total announced deal value in 2013.
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